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Multi Org Structure

The document discusses the multi-org structure in Oracle Apps, which includes business groups, sets of books, legal entities, operating units, and inventory organizations. A business group partitions HR and purchasing information. A set of books separates accounting for a legal entity. Legal entities represent legal companies. Operating units secure information for subledger applications. Inventory organizations track inventory transactions.

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Ashish Gupta
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156 views2 pages

Multi Org Structure

The document discusses the multi-org structure in Oracle Apps, which includes business groups, sets of books, legal entities, operating units, and inventory organizations. A business group partitions HR and purchasing information. A set of books separates accounting for a legal entity. Legal entities represent legal companies. Operating units secure information for subledger applications. Inventory organizations track inventory transactions.

Uploaded by

Ashish Gupta
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Multi Org Structure in Oracle Apps

Oracle APPS Multi-Org Structure

We all hear a lot about the multi-org structure of oracle apps and there is a lot of
jargon thrown around like OU and IO and legal entity etc. It can get pretty confusing
as a beginner. Ok so here is an article that tries to explain the multi-org structure in
Oracle Apps. Basically the different entities in multi-org are:

o Business Group (BG)


o Sets of Books (SOB)
o Legal entities (LE)
o Operating units (OU)
o Inventory organizations (IO)

Business Group

The Business Group is an Organization that represents the consolidated enterprise, a


major division, or an operation company and has no accounting impact. The Business
Group partitions Human Resources information and the Purchasing Approval
Hierarchy. At least one Business Group would be required per country that an
enterprise operates in since HRMS data would have different legislation in different
countries.

If you request a list of employees (in any module) you will see only those employees
in the Business Group of which your Operating Unit is a part. Multiple Legal Entities
can relate to a single Business Group. You must have at least one Business Group.
For a new installation, Oracle Applications provides a default business group, Setup
Business Group. You can define additional business groups as required for your
enterprise.

Sets of Books

A set of books (SOB) is a financial reporting entity that shares the three Cs: a
particular chart of accounts (accounting flexfield structure), functional currency, and
financial accounting calendar. The SOB concept is similar in a Multi-Org environment.
Basically the Set of Books separates the accountings for a legal Entity. A company
which operates in separate cities or separate line of businesses may separate their
accounting transactions across units through separate Set of Books. General Ledger
module secures transaction information (journal entries, balances) by set of books.
When you use General Ledger, you choose a responsibility that specifies a set of
books. You then see information only for that set of books. Besides GL, Fixed Assets
(FA) is also at the SOB level.

You create sets of books using the Set of Books window in General Ledger. You define
all other types of organizations using the Organizations window.

As evident from the diagram above, a Business Group can have one or more set of
Books.

Legal entities

A legal entity represents a legal company for which you prepare fiscal or tax reports.
You assign tax identifiers and other legal entity information to these types of
organizations. Separate Legal Entities may share same set of Books.

Operating units

An operating unit represents an organization that uses any Oracle subledger


application, for example, Order Management, Payables. It may be a sales office, a
division, or a department. An operating unit is associated with a legal entity.
Information is secured by operating unit for these applications. Each user sees
information only for their operating unit. Responsibilities are linked to a specific
operating unit by the MO: Operating Unit profile option.

Inventory organizations

An inventory organization represents an organization for which you track inventory


transactions and balances, and manufactures or distributes products. Examples
include manufacturing plants, warehouses, distribution centers, and sales offices. The
following products and functions secure information by inventory organization:
Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP,
Capacity, and purchasing receiving functions. To run any of these products or
functions, you must choose an organization that is classified as an inventory
organization.

With the Multi-Org, multiple sets of books can use the same “global” item master
organization, since the item master organization is used for item definition and not
item accounting information. All accounting related attributes in the Item Master are
controlled at the item or organization level.

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